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Random Thoughts - 5

Stock market man.  Suppose I’m worth billions, and have a reputation for picking stock market winners.  What can I do without thinking too much?  

A.  I could continue my work, carefully analyzing markets and companies to make my investment decisions.  Maybe too much thinking.

B. I could identify potential sectors or companies, possibly lacking in current market attention, but with some potential.  Then, I could take a huge position with millions upon millions.  The market would take this in advisement and while not really knowing why it is important, would try to pile-on, on the basis of what we’ll call a “position testimonial.”  While pundits would explain why, they and others would also buy, driving up the price even more.  My investment of $300m might increase almost overnight to $350m. 

This is what you can do with huge cash reserves.  Change the perception. Change the market. Enhance your investment. This is a totally legal form of market manipulation.  No insider knowledge is required.   You can’t do it, nor can I.  But with sufficient cash, you could generate more, much more.  As we all know there are thousands* of billionaires floating about, all with the exact same desire: to have more billions.

This is a game for billionaires, not the lesser and inconsequential multi-millionaires. 


*about 2000 in 2017
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